China Has Banned Cryptocurrencies but Is Embracing NFTs

Blockchain Services Network (BSN), backed by the Chinese government, is planning to build an NFT infrastructure, South China Morning Post reported. However, the Chinese NFT industry will not be linked to cryptocurrencies, and only the Chinese yuan will be allowed for services and transactions.

In many cases, NFTs are mostly associated with digital art. He Yifan, the CEO of Red Date Technology (the technical support provider for BSN), said that in China, NFTs will be mainly used for certificate management. That includes car license plates and school diplomas, as blockchain provides “revolutionary database technology.”

“NFTs are launched and traded on public blockchains, which are decentralised platforms that provide access to anyone wanting to write and read data. However, public chains “are illegal in China” as the state requires all internet systems to verify user identities and permit the regulator to intervene in the event of ‘illegal activities’,” 

He Yifan told the Post. 

On the Flipside

• For conformity, some large tech companies in China still abstain from the term “NFTs” and have chosen to call their NFT projects “digital collectibles.”
• China is also trying to dominate the virtual reality space, as “Chinese businesses have registered more than 7,000 trademarks related to the metaverse.”